The Central bank acts as a _________ of cash reserves of commercial banks in the country. (head / leader / custodian / locker), Fill in the blank with appropriate alternative given in the bracket.
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ANSWER:-
The central bank acts as a custodian of cash reserves of the country.
Explanation:
Individuals deposit their money in commercial banks. The commercial banks in turn are legally bound to deposit a certain portion of these deposits with the Central Bank. Thus, the Central Bank acts as a custodian (keeper) of the cash reserves of the country.
PLEASE MARK AS BRAINLIEST
The central bank acts as a custodian of cash reserves of the country.
Explanation:
Individuals deposit their money in commercial banks. The commercial banks in turn are legally bound to deposit a certain portion of these deposits with the Central Bank. Thus, the Central Bank acts as a custodian (keeper) of the cash reserves of the country.
PLEASE MARK AS BRAINLIEST
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The Central bank acts as a ___custodian______ of cash reserves of commercial banks in the country.
The Central bank of our country is the Reserve Bank of India (RBI), which is the banker's bank.
RBI lends money to commercial banks and also to the government both at centre and state levels. Hence, in layman terms, it is the banker’s bank for providing financial assistance.
RBI facilitates passing of debits and credits into the bank accounts of the respective banks on account of various settlements related to clearing operations.
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